Norman Broadbent has run a series of breakfasts addressing the journey CIO’s must take to reach non-executive status. This article shares some key reflections that have emerged at these events over the years.
Why do boards hire CIO’s? The history of the changing role of technology in business is well documented and one that we all know. Academic publications were grappling with the theme as early as the 70’s and 80’s and major newspapers including The Wall Street Journal and The Financial Times frequently call on Board’s today, to embrace the centrality of technology in the future of business. However, like the salesman in Franz Kafka’s novella The Metamorphosis, many companies seem to be, just now, waking up to find themselves changed, often stumbling and tumbling around as they adjust to their new technological skin. Or worse, are watching this transformation take place all around them, whilst clinging to the tried and true of yesterday. Over the last decade or so, CIO’s have established themselves as accepted members of the executive team, but there is still a distinct lack of non-executive representation for technologists, despite the fact that executive CIO’s are now so commonly invited by boards to discuss the challenges they face. Indeed one of the most common anecdotes I have heard on this subject involves the CIO being asked, the day before presenting to the board, “what should we be asking you about tomorrow?”.
The number of technology focused board members ‘is’ on the increase, from 10% to 17% between 2011 and 2017 and for high-performing companies that proportion is
almost double at 32%. These figures appear to suggest that there is an increasing need for boards to provide strategic recommendations that are technologically driven and, that there is a link between this kind of insight and high performance.
One thing that has become clear through Norman Broadbent’s breakfast’s around the question of “why do boards hire CIO’s” is that Board’s need an IT professional who understands the executive landscape and can perform beyond their specialist knowledge. As Simon Rickets, now a plural non-executive at HMRC and previously a serial FTSE 100 CIO said, “NED’s must have proven themselves to be good business leaders, above the day to day of their function at the executive level. [One’s specialist experience] that will enhance the Board’s performance… will only get one through the door, what the chairman will want to see most is the ability to contribute on every business issue, from apprenticeships to acquisitions, regulatory to remuneration.”
Peter Brickley, CIO of Coca Cola European Partners and current Chairmen of The Newberry Building Society believes that, in order to cultivate this kind of view on business, a CIO needs curiosity. Peter encouraged CIO’s to, “stay curious, the people who do best in this role are the ones that want to make the company succeed more than they do themselves. They will ask the questions no one else will and challenge constructively whenever it is needed. They are able to think the thoughts that others can’t, join the dots that make the whole and be strategic.”
Our most recent speaker, David Lister a plural NED serving at HSBC amongst others, says that “preparation, preparation, preparation are the top three attributes of an effective contribution as a Non-Executive Director.” He believes that a board hires a CIO who can come into the board room prepared, having thought through the challenges and risks the business will faced from a technology perspective.
What is interesting here, is that what is expected of a CIO in a non-exec role, is no different from the expectations placed on a CFO, HRD or CEO. The differentiator in this case of course is technology knowledge, but the same could be said when a board looks to hire people with specific regional experience or an M&A specialism. I believe that the answer to our question here “why do boards hire CIO’s” is simply that they do so, for the same reasons they hire anyone else, to look after the interests of the shareholders. What has changed is that the demand for business savvy CIO’s at executive level, has created a ready supply of board appropriate talent, at a time when no board should be without technology representation. Some boards have addressed this need due to a specific problem, in say data or security. Some are being strongly encouraged by regulators and governing bodies to appoint tech savvy NED’s to address risk. While some of the more forward thinking organisastions have simply stayed ahead of the curve. What is clear however, is that this is a growing and persistent shift in thinking, that can only be good for business in the UK and good for our professional community.
If you would like to hear more about this topic or discuss any other upcoming events, please do not hesitate to contact Neil Pilkington, Director at our CIO Executive Search Practice on +44 (0) 20 7484 0000 or via
neil.pilkington@normanbroadbent.com
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